The Nigerian Electricity Regulatory Commission (NERC) has formally transferred regulatory oversight of the electricity market in Lagos State to the Lagos State Electricity Regulatory Commission (LASERC).
This development comes barely two weeks after Lagos State Governor Babajide Sanwo-Olu signed the Lagos Electricity Bill 2024 into law.
With this transfer of power, LASERC now has the mandate to generate, transmit, and distribute electricity in Lagos State, marking a significant step under the provisions of the amended Electricity Act 2023.
According to NERC, the Government of Lagos State has complied with the conditions precedent in the laws, duly notified NERC, and requested the transfer of regulatory oversight of the intrastate electricity market in Lagos State.
The move aligns with Nigeria’s constitutional reforms, which allow states to establish and regulate their own intrastate electricity markets.
NERC maintained that Lagos State has fulfilled the legal requirements, formally requested the transfer of regulatory authority from NERC to LASERC.
As a result of this transfer, Eko Electricity Distribution Plc (EKEDP) and Ikeja Electric Plc (IE) have been directed to establish subsidiaries to oversee intrastate electricity supply and distribution in Lagos State.
The subsidiaries, EKEDP SubCo and IE SubCo, must be incorporated within 60 days and obtain necessary licensing from LASERC.
This development is a significant milestone in the implementation of the Electricity Act 2023 and underscores Lagos State’s commitment to optimizing electricity distribution and supply within its jurisdiction.
LASERC is poised to enhance efficiency, improve service delivery, and promote innovations tailored to the state’s energy needs.
The transfer of regulatory oversight is expected to be completed by June 4, 2025. This transition highlights the collaborative efforts between federal and state authorities to redefine Nigeria’s electricity sector, with Lagos State leading the way in intrastate market regulation.
The development is seen as a significant step towards improving electricity supply and distribution in Lagos State, and is expected to have a positive impact on the state’s economy and residents.
